Two decades of commercial radio broadcasting
Private radio broadcasting in Finland got its start in 1985 when the Council of State granted the first commercial and non-commercial licenses in addition to the existing channels of Finland’s national public service broadcasting company Yleisradio (YLE). During the first years of private radio broadcasting, the number of radio stations and industry revenue developed fast. Total revenue of the local radio stations were up to more than 200 million FIM already in 1990.
The changing economic situation and turmoil in the media markets in the 1990’s had an effect on the development of the radio industry as well. The first national commercial radio, Radio Nova, was born in 1997. It was accompanied by a group of semi-national network radio stations. As a consequence of changes in the structure of radio broadcasting, the investments started shifting from local radio stations to network radio stations. Nowadays, commercial radio provides advertisers excellent opportunities to carry out both nationwide and local campaigns with high reach, targetability and cost effectiveness. In 2008 approximately 50,5 million euros was invested in radio advertising in Finland. Radio reached a 3,4 % market share of all media advertising investments.
National Radio Survey’s report from September-November 2001 shows that commercial radio outnumbered the weekly audience reach figures of public broadcaster YLE for the first time. Less than 45 year old consumers listen mainly commercial channels whereas the listening audience of Yleisradio is on average more mature. However, in recent years commercial radio has increased its relevance also among older age groups.
As a consequence of structural changes in the radio industry, the emphasis of advertising has moved from local radio markets to nationwide markets controlled by chain radio stations. In 2008, national radio formed 70 % of euros invested in radio advertising.
Year 2008
In 2008, media advertising in Finland increased by 1,7 % compared to the previous year. Radio advertising increased by 7,4 % and constituted ca. 50,5 million euros in 2008. Radio advertising reached a market share of 3,4 % of all media investments.
The decrease from the previous year was 0,2 %, resulting from a new data collecting method of the “small ad-cake” which compiles together the media advertising investments in core medias.
Media Advertising Spend -survey have been changed by adding printed and electric catalogs as well as search engine marketing to it. Also the data collection on free sheets and city magazines has been expanded.
On the whole, radio listening remained stable in 2008. Commercial radio reached approximately 3,384 million listeners each week in 2008. The average daily listening time of commercial radio in 2008 increased by one minute and was 1 hour and 34 minutes.
